Questions and answers related to the First Nations Financial Transparency Act
In 2017, the Government of Canada conducted a focused engagement with First Nations leaders and organizations to discuss a new approach to transparency and accountability based on recognition of rights, respect, cooperation and partnership. As outlined in the minister's December 18, 2015 statement, discretionary compliance measures related to the act have ended.
The following questions and answers include those that have been received by Indigenous Services Canada (ISC) from funding recipient and auditors, as well as from information sessions and conferences held across Canada about the First Nations Financial Transparency Act (FNFTA).
ISC recognizes the important role of First Nations-led organizations in supporting First Nations governments to strengthen accountability and transparency. Across the country, these organizations provide expertise, tools and capacity-building services to help communities deliver effective governance.
While all partners cannot be listed, ISC works closely with organizations such as:
- First Nations Financial Management Board
- AFOA Canada
- First Nations Finance Authority
- First Nations Tax Commission
These partnerships reflect a shared commitment to strong, transparent governance that supports First Nations communities.
Questions and answers about the FNFTA
What is the First Nations Financial Transparency Act?
The FNFTA is a federal law introduced in 2013. It was intended improve the financial transparency and accountability by requiring the public disclosure of First Nations financial information. The FNFTA was introduced without consultation with First Nations governments.
Who does the FNFTA apply to?
It applies to all First Nations under subsection 2(1) of the Indian Act.
Does the FNFTA apply to self-governing First Nations?
No. The FNFTA does not apply to self-governing First Nations.
Current approach
Is the FNFTA still enforced?
No. Since 2015, the Government of Canada has not enforced compliance measures under the FNFTA. Instead, we work in partnership with First Nations to co-develop approaches to transparency and accountability.
What changed in 2015?
Enforcement stopped. The government reinstated any funding withheld under previous measures and suspended court actions. The focus shifted to supporting First Nations-led accountability initiatives.
Transparency today
How do First Nations share financial information now?
First Nations continue to share financial information with their members. All ISC funding agreements require that audited financial statements be shared with their citizens as well as with the government of Canada. Many First Nations have their own accountability frameworks and over 300 First Nations financial administration laws include provisions for sharing audited financial statements.
Where can I find financial statements for my First Nation?
Visit the First Nations profiles on our website to view financial statements as they are received.
Where can I find out more information about financial performance, transparency and accountability from First Nations organizations?
Indigenous Services Canada recognizes the vital role of First Nations-led organizations in supporting First Nations governments to strengthen accountability and transparency. Across the country, many organizations provide expertise, tools, and capacity-building services to help communities deliver effective governance. While we cannot name all of these important partners, we acknowledge the close collaboration with organizations such as the First Nations Financial Management Board, AFOA Canada, First Nations Finance Authority, and First Nations Tax Commission. These partnerships reflect a shared commitment to strong, transparent governance that serves First Nations communities.
What is a performance audit , and where can I find out more information?
In addition to reaching out to First Nations experts, the following information may be accessed from the Office of the Auditor General of Canada: "A performance audit is an independent, objective, and systematic assessment of how well the government is managing its activities, responsibilities, and resources. Performance audits are planned, performed, and reported according to professional standards for assurance engagements (that is to say Canadian Standard on Assurance Engagements (CSAE) 3001 for direct engagements)…".
Historical context
What were the original requirements under the FNFTA?
Under section 7(1) of the FNFTA, First Nations were required to prepare and make available:
- Audited consolidated financial statements
- Schedule of Remuneration and Expenses (for chief and councillors)
- Auditor’s written report on the consolidated financial statements
- Auditor’s report or review engagement report on the Schedule of Remuneration and Expenses
These statements were to be posted on the First Nation's website (or another website) within 120 days after the end of each financial year. Once posted, the documents were to remain accessible to the public online for at least 10 years.
The Minister was also required to publish the same documents listed in section 7(1) once provided by the First Nation or once published under section 8(1). The Minister was required to publish these documents on the Department of Indigenous Services website "without delay" after receiving them or after the First Nation published them.
If a First Nation was in breach of the FNFTA requirements, the Minister was able to:
- require an action plan
- withhold monies
- terminate any agreements
The general public was also able to apply to a superior court requiring the council to carry out the requirements of the FNFTA.
Where can I read the full text of the FNFTA?
The full text is available on the Department of Justice site: First Nations Financial Transparency Act (S.C. 2013, c.7).
Contact us
Contact your Indigenous Services Canada regional office funding agreement contact or email the New Fiscal Relationship Secretariat: nrf-nfr@sac-isc.gc.ca.